Flexibility + stability
Fixed universal life provides flexible premium payments and reliable cash value growth tied to a fixed interest rate, offering stable growth over time.
Because these policies have a guaranteed crediting rate, you are not subject to investment risk and your cash value accumulates regardless of market fluctuations.
Fixed universal life is less risky than other universal life policies, so its growth potential is the most limited.
Benefits to you
- Lifetime protection for your loved ones
- Flexible premiums allow you to adjust your payments, or you can choose a fixed amount
- Ability to adjust your benefit amount to align with your changing life – you may want more coverage as your family grows and later decide to reduce your benefit as your children gain independence1
- Ability to build stable, tax-deferred cash value on a tax-preferred basis for unexpected expenses such as travel opportunities, supplemental retirement income or college funding
- Protection from market fluctuation
- If you do not pay enough premium, the policy may lapse
- Loans and withdrawals will impact both the death benefit and policy surrender value
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1 Additional underwriting may be required to increase insurance coverage.
Insurance policy guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.
Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.
Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender periods. Policyholders could lose money in this product.
Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender, and will reduce both the surrender value and death benefit. Withdrawals may be subject to taxation within the first fifteen years of the contract. You should consult your tax advisor when considering taking a policy loan or withdrawal.
Depending upon actual policy experience, clients may need to increase premium payments to keep the policy in force.
This information is a general discussion of the relevant federal tax laws provided to promote ideas that may benefit a taxpayer. It is not intended for, nor can it be used by any taxpayer for the purpose of voiding federal tax penalties. Taxpayers should seek the advice of their own advisors regarding any tax and legal issues specific to their situation.